NYCE CTO

NYCE Corporation announces that John J. Smith has joined the company in the position of Vice President and Chief Technology Officer.

In his new post at NYCE, Mr. Smith will be responsible for the operation of the company’s 24×7 data center, the technological core of the NYCE Network and NYCE EFT Processing Services. In addition, he will oversee systems development, telecommunications infrastructure and future capacity planning. Mr. Smith possesses more than 25 years of banking related technology services. Prior to joining NYCE, most of his career was spent at Summit Bank and its predecessors. There he managed systems development for over ten years and was responsible for all of the bank’s technology operations.

Mr. Smith will report to Steven A. Rathgaber, Executive Vice President and Chief Operating Officer with NYCE. “John’s extensive knowledge of, and experience with, financial services data processing will be invaluable to us as we expand our leadership role in the consistent delivery of quality and reliability to our customers,” Rathgaber said.

About NYCE

NYCE Corporation is one of the leading electronic payments companies in the United States, providing financial institutions and retailers with shared network services for automated teller machines (ATMs), on-line debit point-of-sale (POS) and emerging real-time payment solutions. The company also provides processing services that support ATM management and monitoring services, as well as debit card issuance and authorization solutions. NYCE’s strategic alliance with First Data Corporation (FDC) is a unique model for the industry that combines the strengths of both organizations through product development, service delivery and complementary national/international reach. NYCE has also established itself as a front-runner in real-time person-to-person (P2P) payment services and PIN-secured Internet debit payment solutions. Comprising 2,200 financial institution and retail ATM Participants, the NYCE Network processes approximately 100 million transactions per month while servicing more than 48 million cardholders through 45,000 NYCE-branded ATMs and 350,000 POS locations. NYCE Corporation is headquartered in Woodcliff Lake, NJ, and can be found online at [www.nyce.net][1].

[1]: http://www.nyce.net/

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Smart Card Alliance Conference

The Smart Card Alliance, a non-profit association working to accelerate the adoption of multiple applications for smart card technology, will host a conference on February 5 through February 7, 2002 in Austin, Texas. The event, to be held at SchlumbergerSema’s Austin campus, will provide an opportunity for business and government leaders to discuss the heightened interest in smart card implementation including secure personal identification systems as well as banking and payment infrastructure applications. The event will include a one-day educational program from the Smart Card Alliance Educational Institute and a two-day conference.

“This conference will be an ideal resource for those organizations actively involved in implementing a smart card program or investigating how smart cards can fit into their business strategies,” said Donna Farmer, CEO and president of the Smart Card Alliance. “The February Smart Card Alliance meeting will enable collaboration with top industry experts as well as provide a sounding board for key issues and discussion on how smart cards can provide security and payment solutions.”

The Alliance was created when the industry’s key organizations, the Smart Card Industry Association and the Smart Card Forum, merged in early 2001. The combined membership brings together leading users and technologists from both the public and private sectors. Known as the single industry voice for smart cards, membership includes leading companies in the banking, financial services, computer, telecommunications, technology, healthcare, retail, and entertainment industries, as well as a number of government agencies.

Regarding the upcoming conference, Smart Card Alliance chairman and vice president of SchlumbergerSema Transaction Systems, Paul Beverly noted, “This is the leading forum in North America to obtain information on smart cards, with the opportunity to network, cooperate on projects and establish cross-industry business partnerships.”

The first smart card was invented in the 1970s and since its inception, smart cards have evolved to play a vital role in network security, secure identification and financial payment systems. Frost and Sullivan estimates that the smart card market will grow at a 41 percent compound annual rate over the next three years in North America, from 32 million cards issued in 2000 to 125 million cards issued in 2004.

About the Event

The Smart Card Alliance February event will include two key programs. The Educational Institute’s pre-conference smart card education program features industry-renowned expert speakers and, for the first time, both the Smart Card 101 course and the new Smart Card 201 course will be offered. The courses will run concurrently on February 5, 2002. The second program will be a two-day conference on February 6 and 7.

About the Smart Card Alliance

The Smart Card Alliance is a not-for profit, multi-industry association of member firms working to accelerate the widespread acceptance of multiple applications for smart card technology. Through specific projects such as education programs, market research, advocacy, industry relations, and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. For more information please visit [http://www.smartcardalliance.org][1].

[1]: http://www.smartcardalliance.org/

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FUSA 4Q/01

First USA reported a 70% increase in fourth quarter operating income of $326 million, driven by higher net interest income, lower expenses and the addition of the Wachovia credit card business last year. The pre-tax return on outstandings was 3.10% in the fourth quarter, up from 2.64% in the prior quarter. End-of-period managed loans were $68.2 billion, up $1.2 billion from 4Q/00. First USA opened 1.0 million new accounts during the quarter, a 22% increase from the year-ago quarter and down 13% from the third quarter. At Dec 31, 55.6 million cards were issued. The managed charge-off rate increased to 5.59% from 5.41% a year ago, reflecting lower average outstandings on the legacy First USA portfolio and higher losses, and decreased from 5.89% in the third quarter, reflecting lower losses. The managed 30-day and 90-day delinquency rates were 4.46% and 1.93%, respectively, down from 4.51% and 2.02% in the year-ago quarter and up from 4.25% and 1.80% in the third quarter. For current and historical performance on Bank One/First USA visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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TSYS 4Q/01

TSYS reported a 36.5% increase in net income for the fourth quarter to $29.5 million. TSYS reported bankcard processing revenues of $148,781,000 during 4Q/01, a 13.9% increase. The processor predicts net income will grow by at least 20% this year. TSYS also noted it acquired TSYS Total Debt Management, Inc., from Synovus Financial for stock valued at $43.5 million. Before the acquisition, TDM operated as a wholly owned subsidiary of Synovus; it now operates as TSYS Debt Management, a wholly owned subsidiary of TSYS. For current and historical performance on TSYS visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Dynamic Value

Alliance Data Systems this week unveiled a new multi-use card program for the retail industry that includes pre-paid functionality, loyalty features and database marketing capabilities. ‘Dynamic Value’ provides instant messaging at the POS terminal for special merchandise offers; points for other incentives; and email notices that include special offers for the customer’s next visit and notification of special store events. The program also supports SKUs enabling retailers to design marketing programs that are tailored to the exact needs of their businesses and specific desires of their customers. Utilizing the ‘Dynamic Value’ database marketing service, retailers can customize programs based on consumer purchase behavior, and thereby create individualized incentives and offers that align with the desires of their customers.

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Money Tree IMS

For sales representatives, getting to “yes” has never been easier or more instant. At least for those using the newly released “Instant Merchant System” being offered to the sales reps of Money Tree Services, Inc., a national provider of credit and debit card accounts for retail and Internet merchants.

The IMS, first of its kind in the industry, allows Money Tree’s sales reps to complete an online merchant application and agreement at the merchant location, receive account approval within seconds, and then download a program for the merchant’s credit card terminal in minutes. Once the terminal is loaded with the program, the new customer is ready to go. “We’re thrilled with the possibilities of this technology,” says Mitch Lau, president of Money Tree. “In the past, it’s taken two and three days to do what our sales reps can do now in a matter of moments.” Lau says the innovation will eliminate the greatest objection most sales reps face in the industry. “It’s so competitive out there that it’s difficult to get attention,” says Lau. “But now, our sales reps are able to eliminate the biggest objection they receive. Typically merchants don’t like the hassle or the delays. They are all too busy. The IMS completely eliminates this barrier to getting a sale. It’s so easy it makes it hard to get a ‘No’.”

Lau expects this to have a great impact on his sales reps’ bottom line. “We’re projecting that they will be able to double and even triple their commissions. Not only is it going to greatly improve their turn ratios, it’s going to really free up their time to focus on getting more sales.”

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CARDBASE CHIPCERT

CardBASE Technologies Ltd* , a leading provider
of multi-application smart card management solutions, announced that
it has joined the RSA Secured Partner Program to support
interoperability between ChipCERT and RSA Keon digital certificate
management software.

As part of the program, ChipCERT has been awarded “RSA Secured RSA Keon
Ready” certification signaling its compatibility with RSA Security’s digital
certificate management software. The RSA Secured certification lets
organizations know that ChipCERT is compatible with RSA Security’s
market-leading security products and technologies.

ChipCERT* from CardBASE Technologies, is a PKI solution built on the
CardBASE Multi-Application Smart Card Management System platform. ChipCERT
enables organizations to securely bulk issue and actively manage the
lifecycle of digital certificates on smart cards. ChipCERT integrates with
approved Certificate Authorities and is card-independent, with support for
the leading card and token manufacturers.

Gerry Looby, Chief Technical Office at CardBASE said: “We chose to team with
RSA Security because they are a leader in e-security solutions and their PKI
technology is proven. We were able to easily integrate the RSA Keon digital
certificate management software into the existing ChipCERT infrastructure,
providing a solution for the deployment of digital certificates on smart
cards within a proven security environment.”

“We are excited to welcome CardBASE Technologies to the RSA Secured Partner
Program,” said Robert Pritchard, vice president of corporate and partner
development at RSA Security. “Our strategic partner program is one of the
most aggressive and successful in the industry, and we look forward to
working with CardBASE to help deliver secure e-business solutions to our
customers.”

ABOUT CARDBASE TECHNOLOGIES

CardBASE Technologies® a leading provider of smart card solutions for secure
e-commerce, is a European company serving world markets from its
headquarters in Ireland and offices in the United States and Africa. Since
its foundation in 1993, CardBASE Technologies has been providing innovative
smart card management systems for the Internet, Banking, Financial and
Airline markets.

The CardBASE solution supports Multiple Application Smart Cards, Card
Personalisation, Card Management, Transaction Processing and Settlement.
CardBASE solutions have been specifically designed to support the Visa
International led Common Electronic Purse Specification (CEPS), EMV and the
Public Key Infrastructure (PKI) standards.

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Infrared Payments

Beaming payments between consumers and merchants is coming closer to a reality as the nation’s largest payment card network provides support. VISA International announced this morning it has developed specifications to enable payments to be beamed securely from a handheld device to a merchant terminal using infrared technology. The ‘VISA Financial Messaging Profile for Proximity Payment’ specifications will enable application developers and card issuers to develop new payment services for consumers who use portable devices such as mobile phones and PDAs. VISA estimates there are 150 million devices capable of infrared messaging in use worldwide. The new VISA specifications are built upon the ‘Point and Pay Protocol’ developed by the Infrared Financial Messaging Group. VISA says adding the VISA option to mobile phones and PDAs will expedite payments for consumers travelling or in a hurry, such as taxis, parking garages, and fast food restaurants.

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Emergent Update

Emergent Financial Group has purchased NextTech Card Services Inc. and has hired a former Western Union executive. Emergent purchased the Junum subsidiary, NextTech, for total consideration of $5 million, payable in Emergent common stock. Emergent will continue the original vision of NextTech by bundling Junum’s credit management services with its credit card offerings. Emergent also announced that John Mendez has joined the company as Director of Sales. Mr. Mendez previously held several executive positions with Western Union’s Commercial Services and Moneygram Payment Systems. Emergent is principally engaged in building a distribution network for non-bank financial services delivered through countertop POS devices in retail locations globally.

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VISA Rent Payments

Visa U.S.A. and Westdale Asset Management, Ltd. announced an agreement that will make rent payment more convenient for Westdale residents in the Atlanta, Georgia area. Effective immediately, more than 1,500 residents at Barringer Place in Atlanta, Brentwood Downs in Lilburn, Wellington Ridge in Lawrenceville, and Wood Bridge in Apharetta will have the option of paying their monthly rent automatically with their Visa card.

Following Westdale’s initial acceptance of automatic and one-time card-based payment at its four Georgia properties, the company looks forward to rolling out automatic bill payment at its 135 rental communities nationwide. By providing residents with this innovative payment option, Westdale joins several organizations in other industries already benefiting from Visa’s automatic bill payment program.

Card acceptance and the Visa automatic bill payment program not only provide convenience benefits to Westdale residents, but real business advantages for Westdale. Because the costs associated with cash and check handling are consistently higher than those associated with payment card transactions, this program will help to cut processing costs and streamline collections. Additionally, automatic bill payment will ensure Westdale’s receipt of on-time payment and will result in fewer delinquencies. The program will also enable Westdale to expand payment options, which can help them to differentiate themselves from competitors, leading to increased resident retention. Consumers are becoming increasingly more aware of the benefits automatic bill payment offers them. According to a national survey, one-third of all U.S. consumers would like merchants to establish automatic bill payment programs.(1)

Visa research has also found that 51 percent of credit and debit cardholders want the option of using a payment card to pay recurring bills automatically because it eliminates the need to write and mail multiple checks every month. “By implementing an automatic bill payment program with Visa, Westdale is demonstrating that it is a leader in the property management industry,” says Armen Khachadourian, SVP New Market Development, Visa U.S.A. “In addition to providing its residents with an ideal, convenient payment option, Westdale also gains a business enhancement tool. Automatic bill payment helps to address many of the billing and customer service challenges residential property management companies currently face and we look forward to further addressing the needs of this industry in the future.”

“Visa’s automatic bill payment program complements our existing commitment to our residents to make paying their monthly rent more convenient,” says Karen Tepera, Executive Vice President, Westdale Asset Management, Ltd. “While offering the option of automatic payment will help improve customer service, we expect that working with Visa to establish this program will also enable us to build resident loyalty and ultimately increase operating efficiency.”

About Visa U.S.A.

Visa is the world’s leading payment brand and largest consumer payment system, enabling banks to provide their consumer and merchant customers with a wide variety of payment alternatives. More than 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate over $835 billion in annual transaction volume – including roughly half of all Internet payments – with virtually 100 percent reliability. U.S. consumers carry 353 million Visa-branded smart, credit, commercial, stored value and check cards, accepted at approximately 22 million locations worldwide. Visa’s people, partnerships, brand, payment technology and security standards are helping to create universal commerce – the ability to safely conduct transactions anytime, anywhere, anyway. Please visit [http://www.visa.com][1] for additional information.

About Westdale

Westdale Asset Management, Ltd. is a real estate management company providing property management and asset management services for multi-family properties throughout the United States. Specializing in each of the facets, Westdale continues striving toward excellence, with a foundation built on commitment. Westdale currently has over 37,000 units in its portfolio inhabiting 13 states nationwide in 20 major metropolitan areas. Please visit [http://www.westdale.com][2] for additional information.

[1]: http://www.visa.com/
[2]: http://www.westdale.com/

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CDMA CARDS

Oberthur Card Systems, a
global leader and the innovator in the smart card industry has successfully
connected its SIMphonIC CDMA product to China Unicom’s first available
CDMA network. Oberthur is among the companies taking the lead in passing the
first series of tests using the R-UIM card.

SIMphonIC CDMA, with its application Toolkit functionality and varied
memory capacity, allows China’s mobile network operators to provide
personalized value-added services to their customers who can roam and
authenticate themselves on both GSM and CDMA networks. To ensure a high level
of compatibility, the test featured handsets from 19 manufacturers approved
for use on the CDMA network by the Chinese authorities. The tests prove the
compatibility of the SIMphonIC CDMA card both with the CDMA network and
with the approved CDMA handsets. Oberthur’s solution is used as a reference
for China Unicom’s framing standard and data test during the development and
deployment of its CDMA network.

Based on Qualcomm’s CDMA technologies, the SIMphonIC(TM) CDMA has been
developed following the 3GPP2(1) (3rd Generation Partnership Project 2)
specification for the design of the UIM (User Identity Module) of CDMA,
combined with the GSM standard from the ETSI (European Telecommunications
Standards Institute) thereby creating an international CDMA/GSM dual mode
roaming solution. Inserted into a GSM or CDMA handset with a smart card slot,
the SIMphonIC(TM) CDMA allows the portability of such information while
roaming from one environment to another, enabling users to gain access to
their data while travelling between technologies. Operators, in turn, will
benefit from a reduced cost of implementation and increased revenue through
international roaming.

The SIMphonIC(TM) CDMA is intended to allow access to the CDMA networks,
such as the current CdmaOne networks in China and Korea, and the imminent
CDMA2000 networks in Japan, Korea and the Americas. Furthermore, the
SIMphonIC(TM) CDMA also allows access to existing GSM networks in Europe,
China and the Americas. The SIMphonIC(TM) CDMA is the ideal module for
countries that do not currently use smart card technology and wish to
integrate the R-UIM (Removable User Identity Module) solution into their
CdmaOne networks.

Oberthur Card Systems has an R&D center in Beijing and a production site
in Shenzen in order to maintain and further develop its commitment to China’s
market, and in particular to support its relationships in the region with key
players such as China Unicom. Mr. Vincent Bernard, Chief Representative for
Oberthur Card Systems in China and his team reinforce this commitment by
stating their objective to deliver the most advanced technology available to
China.

About Oberthur Card Systems:

Oberthur Card Systems (Paris Stock Exchange – Code Euroclear 12413), a
global leader and the innovator in the smart card industry, is shaping the
future by offering the ultimate in SIM, WAP, 3G (IMT-2000/UMTS), e-wallet
technologies & Internet-based card management services coupled with a firm
commitment to open standards.

Championing EMV migration, Oberthur is the world’s number one supplier of
MasterCard and Visa cards, a leader in the banking, e-commerce, m-commerce and
pay-TV sectors, and in Java(TM) and GSM technologies.

Oberthur Card Systems has an international reach with an industrial and
commercial presence in 21 countries across the five continents. Oberthur Card
Systems had sales of 451.1 million Euros in 2000.

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